Anglo American wins praise for CEO hire

Analysts praise Anglo American for hiring Mark Cutifani as CEO

Mark Cutifani is considered one of the top executives in the mining industry, and Anglo American PLC is getting a big thumbs-up from analysts for hiring him as its next chief executive. Mr. Cutifani worked in Canada for CVRD Inco., and then moved on to AngloGold Ashanti Ltd., where he made key improvements to the company’s operations and corporate structure (click here for 2009 FP interview).

He inherits a very challenging situation at Anglo American. BMO Capital Markets analyst Tony Robson noted the Anglo CEO job is tougher than most because of the country’s huge exposure to South Africa, “which brings with it a higher degree of political tension and social unrest.” Mr. Cutifani’s South African experience with AngloGold should help in that regard. He is also president of the South African Chamber of Mines.

Mr. Robson noted that Mr. Cutifani will need to improve Anglo’s operations both within and outside South Africa for this appointment to be a success. It comes at a “crucial” time for Anglo, he wrote, as the company is set to announce results from the reviews of both its struggling platinum business and its Minas Rio iron ore project, which is facing huge cost inflation.

Jason Fairclough, an analyst at Bank of America Merrill Lynch, would like to see Anglo’s South African business split apart from everything else to remove the “South African overhang” on the other assets. He wrote that Mr. Cutifani’s actions at AngloGold indicate “a willingness to consider all options to unlock value,” implying that he could take a serious look at this option.

Investing Videos

Promoted by iShares by Blackrock

Active Investor was produced by Postmedia's advertising department in collaboration with iShares by BlackRock to promote awareness of this topic for commercial purposes. Postmedia's editorial departments had no involvement in the creation of this content.

Almost Done!

Postmedia wants to improve your reading experience as well as share the best deals and promotions from our advertisers with you. The information below will be used to optimize the content and make ads across the network more relevant to you. You can always change the information you share with us by editing your profile.

By clicking "Create Account", I hearby grant permission to Postmedia to use my account information to create my account.

I also accept and agree to be bound by Postmedia's Terms and Conditions with respect to my use of the Site and I have read and understand Postmedia's Privacy Statement. I consent to the collection, use, maintenance, and disclosure of my information in accordance with the Postmedia's Privacy Policy.

Postmedia wants to improve your reading experience as well as share the best deals and promotions from our advertisers with you. The information below will be used to optimize the content and make ads across the network more relevant to you. You can always change the information you share with us by editing your profile.

By clicking "Create Account", I hearby grant permission to Postmedia to use my account information to create my account.

I also accept and agree to be bound by Postmedia's Terms and Conditions with respect to my use of the Site and I have read and understand Postmedia's Privacy Statement. I consent to the collection, use, maintenance, and disclosure of my information in accordance with the Postmedia's Privacy Policy.